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AFRM vs BRK-A

AFRM
Affirm Holdings, Inc.
BEARISH
Price
$46.88
Market Cap
$15.62B
Sector
Financial Services
AI Confidence
85%
BRK-A
Berkshire Hathaway Inc.
BEARISH
Price
$718921.00
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
65%

Valuation

P/E Ratio
AFRM
57.88
BRK-A
15.45
Forward P/E
AFRM
12.29
BRK-A
22.3
P/B Ratio
AFRM
4.39
BRK-A
1.44
P/S Ratio
AFRM
4.2
BRK-A
2.78
EV/EBITDA
AFRM
44.08
BRK-A
7.21

Profitability

Gross Margin
AFRM
47.78%
BRK-A
26.15%
Operating Margin
AFRM
10.47%
BRK-A
32.96%
Profit Margin
AFRM
7.6%
BRK-A
18.03%
ROE
AFRM
8.92%
BRK-A
9.81%
ROA
AFRM
1.23%
BRK-A
5.11%

Growth

Revenue Growth
AFRM
29.6%
BRK-A
-0.7%
Earnings Growth
AFRM
59.3%
BRK-A
-2.5%

Financial Health

Debt/Equity
AFRM
2.59
BRK-A
0.19
Current Ratio
AFRM
13.85
BRK-A
7.07
Quick Ratio
AFRM
10.21
BRK-A
6.62

Dividends

Dividend Yield
AFRM
--
BRK-A
--
Payout Ratio
AFRM
0.0%
BRK-A
0.0%

AI Verdict

AFRM BEARISH

AFRM's Piotroski F-Score of 7/9 indicates strong operational health, but the absence of an Altman Z-Score raises concern about bankruptcy risk, particularly given a high Debt/Equity ratio of 2.59. The stock trades at a premium valuation (P/E 57.88 vs. sector average 30.46) despite mixed earnings quality, with recent Q/Q EPS growth at +213% but year-over-year EPS down 5.3%. Insider selling totaling $56.66M in the last six months signals bearish sentiment from management. While revenue and earnings growth remain robust (29.6% and 59.3% YoY), the lack of cash flow data and high leverage undermine financial stability. The current price of $46.88 is significantly above both the Graham Number ($13.95) and intrinsic value estimate ($23.9), suggesting a substantial valuation premium driven by growth expectations.

Strengths
Strong Piotroski F-Score of 7/9 indicating solid operational efficiency and profitability trends
High revenue and earnings growth rates (29.6% and 59.3% YoY respectively)
Significant positive earnings surprises in recent quarters (avg +37.94%)
Risks
High Debt/Equity ratio of 2.59, well above sector average of 1.50, indicating elevated financial leverage
Insider selling of $56.66M in last 6 months with no buys, signaling potential misalignment with shareholders
Current price ($46.88) is nearly 200% above the Graham Number ($13.95) and 95% above intrinsic value ($23.9)
BRK-A BEARISH

BRK-A shows bearish fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Concerns include weak profitability or high valuation.

Strengths
Low debt with D/E ratio of 0.19
Risks
Weak financial trend (Piotroski F-Score: 3/9)
Declining revenue (-0.7%)

Compare Another Pair

AFRM vs BRK-A: Head-to-Head Comparison

This page compares Affirm Holdings, Inc. (AFRM) and Berkshire Hathaway Inc. (BRK-A) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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